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2020 (8) TMI 403 - ITAT RAJKOTRevision u/s 263 - incentive received being refund of VAT under the scheme of Government of Gujarat - revenue or capital receipt - CIT was of the view that such incentive was disbursed towards meeting the running expenses and the operating the business and has to be treated as revenue in nature - HELD THAT:- ITAT in the own case of the assessee has decided the identical issue in favour of the assessee. Thus the AO has taken one of the possible view by treating the incentive as capital receipt not chargeable to tax. Therefore, in our considered view the order of the AO cannot be held as erroneous insofar prejudicial to the interest of revenue. In this regard we find support and guidance from the judgment in the case of CIT vs. Max India Ltd [2007 (11) TMI 12 - SUPREME COURT]. We hold that there is no error in the order of the AO causing prejudice to the interest of revenue as alleged by the learned principle CIT. Accordingly we hold that the order passed by the learned PCIT under section 263 of the Act, is not sustainable. Hence we quash the same. Thus the ground of appeal of the assessee allowed.
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